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Gas supply likely to improve from next week
Gas supply in the country is expected to improve to some extent from the next week as a floating storage and re-gasification unit (FSRU), known as LNG terminal, is scheduled to resume operation from April 3 after end of its routine maintenance work.
According to official sources, one of the two FSRUs went into maintenance programme last month, leading to a decline in the gas supply to the national grid.
As a result, the country’s gas supply came down by 500 million cubic feet per day (MMCFD) to about 2,655 from.
Of the two FSRUs set up in Maheshkhali, one having 650 MMCFD capacity is owned and operated by US-based Excelerate Energy and another, having 500 MMCFD capacity, is owned and operated by Summit Group.
“Recently, the FSRU, owned and operated by Summit Group, came back from the maintenance programme and is now ready for operation. We hope it will resume operation from April 3 as per schedule,” Engr. Md. Kamruzzaman Khan, Director (Operation & Mines) of Petrobangla, told UNB.
He also said resuming operation of the Summit’s FSRU will increase the gas supply by 500 MMCFD to the national grid which will improve the overall supply situation.
He said currently, Petrobangla can get a maximum 650 MMCFD gas supply from one FSRU. “But after Summit FSRU’s resumption of supply, we will get 1100-1150 MMCFD gas,” he added.Petrobangla officials, however, said despite the Summit FSRU’s comeback, the country will continue to suffer from the gas crisis as there will remain a huge gap between gas demand and supply.
The country’s gas demand is about 4000 MMCFD when FSRU will resume operation it will be able to increase the supply to maximum 3150, another official of Petrobangla said.
Industries in Dhaka, Gazipur and Narayanganj have been experiencing an acute gas shortage for long due to the shortage in supply.
Most of the industries in Gazipur do not get adequate supply of gas during their operational periods, the most crucial hours during which their machines need to be running. Inadequate supply manifests in the form of low pressure gas flow.
Low pressure gas flow is akin to low voltage electricity - many appliances won't run, even though an electric charge is present.
Due to the lack of gas supply, production in various factories is being disrupted and some are on the verge of shutting down.
In the ongoing gas crisis, important machines like generators and broilers in the dyeing section of the factories are not operating. This has been posing a great risk for the industries to continue their production and pushing them towards huge financial losses.
Industry insiders said there are more than 300 factories in Kaliakoir and other areas in Gazipur.
All these industries have been suffering from the nagging gas crisis and some of them have already suspended their productions.
Each of the industries has more than 1000 workers. But following the gas crisis, they have to reduce their production target while some of them use CNG at a higher cost to continue their operations.
Wheels of hazard: Motorcycle safety crisis unfolding on Bangladesh’s roads
In Bangladesh, motorcycles, with their ease of navigation and cost-effectiveness, have become a popular mode of transport. However, this preference comes with a significant drawback: motorcycles are at the epicenter of the nation’s road safety crisis. While there was a hopeful decrease in motorcycle-related accidents in the past year compared to 2022, these two-wheelers remain the most common protagonist in the tragic tales of road accidents across the country. The situation is dire, with not only deaths being a common outcome but an increasing number of individuals suffering life-altering injuries, including the loss of limbs.
The National Committee to Protect Shipping, Roads and Railways (NCPSRR), a vigilant civic organization, illuminates this pressing issue with alarming statistics: from 2020 to 2023, 33-40% of all annual road accidents involved motorcycles. This figure has been on a distressing upward trajectory since the start of this year. According to the NCPSRR, the daily average ranges from 8 to 10 fatalities in 10 to 12 motorcycle accidents—a grim statistic that often escapes the attention of the national media spotlight.
The heart of this crisis is attributed to the presence of underage, unskilled, and unlicensed drivers on the roads. The lack of stringent enforcement by the Bangladesh Road Transport Authority (BRTA) and the police has been pinpointed as a contributing factor. Ashis Kumar Dey, the general secretary of NCPSRR, doesn’t mince words when he lists the reasons behind the spike in motorcycle accidents: the proliferation of motorcycles, including many that are unlicensed, and reckless driving habits are significant contributors. Dey strongly believes that both law enforcement and the regulatory body, BRTA, need to intensify their efforts.
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To combat this escalating problem, Dey proposes a comprehensive crackdown on underage and unlicensed riders and unregistered motorcycles. He advocates for the implementation of mobile courts across all districts for three consecutive months, a bold strategy aimed at curtailing the rampant violations contributing to road safety hazards.
The Road Safety Foundation (RSF) adds a quantitative dimension to the discourse with its annual report, revealing that in 2023, 6,524 individuals, including 974 women and 1,128 children, lost their lives in 6,911 road accidents across the country. Motorbike riders and pillion passengers comprised a staggering 38.12% of these fatalities.
Delving deeper into the data, RSF provides a comparative analysis of motorcycle accidents and fatalities over recent years, presenting a grim narrative of increasing incidents and loss of lives, peaking in 2022. However, a glimmer of hope emerges from the 2023 statistics, showing a 14.83% decrease in accidents and a 19.54% drop in fatalities compared to the previous year. Despite this positive trend, Saidur Rahman, executive director of RSF, remains cautious, warning that this decrease should not be prematurely celebrated as a sign of sustained improvement in road safety.
Rahman further elaborates on the challenges at hand, pointing out that motorcycles constitute 71% of all motor vehicles in the country, with a significant portion of these riders being teenagers and young adults. This demographic exhibits a pronounced disregard for traffic laws, exacerbated by a lack of stringent monitoring and enforcement, leading to reckless behavior and tragic outcomes. The discourse takes a critical turn as Rahman highlights the frequent clashes between motorcycles and larger vehicles such as trucks, covered vans, and buses. The drivers of these larger vehicles often lack the necessary skill or are overworked, contributing to their involvement in accidents with motorcycles. The inadequacy of the public transport system and the chronic issue of traffic congestion have further popularized motorcycles as a preferred mode of transport, despite the associated risks.
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In a noteworthy development, Rahman acknowledges the role of increased awareness and the efforts of highway police in the recent decline in motorcycle accidents. Abu Raihan Md Saleh, Joint Commissioner (Traffic-North) of Dhaka Metropolitan Police, supports this view, attributing the reduction in accidents to the rigorous enforcement of traffic laws. Saleh’s remarks underline the police’s commitment to curbing reckless riding, unregistered bikes, and license violations, although this has led to complaints from bikers about perceived overzealous policing.
Saleh also emphasizes the crucial role of parental responsibility in preventing underage and inexperienced individuals from taking to the roads on motorcycles. He expresses optimism that with heightened vigilance from parents and guardians, the trend of motorcycle accidents can be further curbed.
This multifaceted crisis of motorcycle safety in Bangladesh calls for a concerted effort from all stakeholders: law enforcement, regulatory bodies, civic organizations, and the community at large. The statistics and stories paint a clear picture of the challenge ahead, yet they also offer a blueprint for action. By addressing the root causes of motorcycle accidents and implementing targeted safety measures, Bangladesh can hope to navigate its way out of this perilous situation, making its roads safer for everyone.
Increase vigilance on movement of three-wheelers, motorcycles during Eid holidays: Quader
NBR moves to align Bangladesh’s tariff structure with WTO Commitments
In a step towards global trade compliance, the National Board of Revenue (NBR) has undertaken a comprehensive review of Bangladesh's tariff regime, identifying 60 tariff lines where current customs duties and associated charges surpass the bound rates established in the World Trade Organization (WTO) agreements.
As part of its initial measures, customs duties on 6 items have been reduced, signaling Bangladesh's commitment to aligning its trade practices with international standards.
The initiative, detailed in an official document, sets forth a plan to gradually adjust these rates to fall within the WTO-agreed bound tariffs by 2026. Bound tariffs represent the maximum most-favored nation (MFN) tariff rate a country commits to at the WTO, serving as a ceiling that applied tariffs cannot exceed. This regulatory framework ensures that trade policies remain predictable and stable, providing security for traders and investors.
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Countries typically negotiate bound tariffs during their accession to the WTO or through subsequent trade negotiations, setting these rates higher than their applied tariffs to retain policy flexibility. However, exceeding these bound rates without proper adjustments can lead to international disputes and demands for compensation, emphasizing the importance of adherence.
The recalibration effort by Bangladesh reflects a broader trend among WTO members, where developed, developing, and transitioning economies have significantly increased the proportion of imports with bound tariff rates, enhancing global market stability.
Additionally, the government has resolved to eliminate the minimum import price requirement, already removing it from 55 items with a strategic plan to phase it out entirely from the remaining 130 products by 2026. This move aims to simplify the import process and foster a more competitive market environment.
The document outlines a cautious approach to tariff reduction, ensuring that local industries are not adversely affected and that revenue mobilization remains robust.
The NBR's strategy involves a careful balancing act, prioritizing the protection of domestic sectors while advancing the country's export competitiveness.
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This progressive adjustment of customs duties and the abolition of the minimum import price underscore Bangladesh's efforts to integrate more seamlessly into the global trading system, promoting economic growth and development in alignment with WTO commitments.
No headway in taking Dhaka’s internet, satellite TV overhead cables underground
Despite repeated efforts by the Power Division, no progress has been made in bringing the distressing overhead internet and satellite TV cables underground although power utilities are implementing their project in this regard.
It has even not possible to make the operators of internet and satellite TV cables agreed to join the ongoing underground cabling projects of the power utility bodies.
According to official sources, Dhaka Power Distribution Company Limited (DPDC) has been implementing its first project in the Dhanmondi area to take its all overhead transmission lines underground.
“But despite repeated calls by the DPDC, no internet or TV cable operator agreed to join the project. They were even offered free of cost to join the scheme. But no response was received,” a top official of the Power Division told UNB.
In such a frustrating situation, recently the Power Division reconstituted its previous committee and also convened a meeting to find a solution to it. But finally the meeting was not held for unknown reasons.
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Member secretary of the reconstituted committee and director of the Power Cell Md. Salim Ullah Khan informed that the power Division’s efforts will continue.
“But the other departments and agencies are not interested in cooperating with the Power Division’s efforts in this regard,” he told UNB.
Sources at the Power Division blamed the Nationwide Telecommunication Transmission Network (NTTN) and internet service providers (ISPs) for the horrible situation of the overhead cables.
After a number of meetings, the previous committee of the Power Division found it difficult to address the problem without their cooperation.
According to its report submitted to Power Division, Summit Communications Limited (SCL) and Fiber@Home (FAH) have been working as NTTN in the city and they laid underground cables for operating their main internet network in the city while some 1734 legal and some 5,000 illegal internet service providing (ISP) companies have been operating as local ones to provide internet connections to homes and offices through overhead cables.
As per the system, the ISPs are supposed to take connections from SCL and FAH to take internet service to homes and offices from the main network. Recently, Bahon Limited, another NTTN company, also joined the network.
But NTTN companies alleged that the ISPs are not taking connections from Label Distribution Protocol (LDP) or Access Point (AP) installed by NTTN as it will cost them financially, says the report.
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On the other hand, the report reveals, the IPS companies alleged that they do not prefer taking connections from LDP or AP as they do not get required and instant solutions from the NTTN companies if any problem takes place in any internet service connection.
Besides, the NTTN are charging excessively in providing connections to the ISP companies from their LDP and AP, the report mentions quoting the ISP companies.
Under the circumstances, the ISP companies are hanging overhead cables indiscriminately and giving connections to homes and offices without following any rule or regulation, the report says, adding that only the Bangladesh Telecommunication Regulatory Commission (BTRC) can step in and resolve the conflict.
Finally, the committee adopted an 11-point recommendation to have a solution and take all overhead cables underground through coordination with electricity distribution companies —DPDC and Desco.
The committee found that the haphazardly hanged internet, security and satellite TV cables are not only posing a great threat to the power distribution system, but also creating a major obstacle to the government’s move for the beautification of the capital.
Rashed Amin Biduyt, an official of the Bahon Limited, said they are not joining the DPDC underground cabling project due to technical reasons as it will not fulfill its requirements to facilitate connections to ISPN.
"But we're laying our own cables underground with the permission of the South City Corporation," he said.
Read more: Installation of underground cables completed in Hatirjheel area
JU students demand medical faculty that may benefit around 1 crore people in adjacent areas
On April 13, 2019, when Jahangirnagar University campus wore a festive look to welcome Pahela Baishakh, Nuruzzaman Nivrit, a 45th batch student of English department, went to the university medical centre with chest and stomach pain. As his condition turned complicated, he was referred to Enam Medical College Hospital in Savar at around 9:15 pm. However, he died on the way to the hospital.
“I want to live. Help me to live, give me some money,” Md. Nazrul Islam, an employee of Al Beruni Hall of Jahangirnagar University, requests all. He is suffering from liver cirrhosis. He has been undergoing treatment at the Super Clinic for the last few months.
Not only Rashed or Nuruzzamn, many other students of university suffer sometimes due to lack of proper treatment, sometimes for not getting an ambulance.
Every time there has been a movement to improve the facilities at the medical center after death due to negligence. There were also assurances too from the authorities concerned. But, none of the 13-point demand students raised after the death of Nivrit has been implemented.
Files for improvement of infrastructure and equipment of the medical center are lying in one corner of the concerned office, alleged students.
They said they need an international standard medical faculty and specialized hospital on the campus.
Talking to UNB, some students said if a specialized hospital is established with laboratories and labs and higher degrees in medicine are provided, students, teachers and staff on the campus will get better treatment and death by negligence can also be prevented.
Besides, about one crore people of Savar, Dhamrai, Manikganj, Gazipur and Tangail regions will be able to avail the health service at a low cost, they said.
According to Scopus, Elsevier's abstract and citation database, 837 articles on medicine have been published in international journals since establishment of JU . Of these, 237 research articles have been published from 2022 to September 17 this year. As a result, researchers have urged the authorities concerned to establish a specialised faculty.
Professor Nuh Alam, acting dean of the Faculty of Biology of JU, said, "Our five departments are directly related to medical services. Naturally, research on these topics is increasing. In that context, there is a need for a full-fledged medical faculty.”
General Secretary of JU Teachers' Association Prof Dr M Shamim Kaiser stressed the need for a specialised hospital alongside medical faculty to move up in the global ranking.
Prof Dr Sohel Ahmed of the Department of Biochemistry and Molecular Biology said that the talented and skilled students of Pharmacy, Microbiology, Biochemistry and Genetic Engineering departments of the university are going abroad after completing their studies due to lack of good opportunities.
If an international standard hospital and laboratory are established here, teachers and students will be able to make a big contribution to research alongside medical services, he said.
There are several big government institutions including Bangladesh Public Administration Training Center, Bangladesh Livestock Research Institute near JU.
Besides, about 1crore people live in Savar, Ashulia, Dhamrai and Gazipur industrial areas who don’t have access to advanced treatment due to lack of good hospitals.
Resident Medical Officer of Manikganj Sadar Hospital Kazi AKM Russell said, "There is no advanced medical facility in the region. So patients with complicated problems are sent to Dhaka. If a good healthcare facility is established in this region with the help of the government, there will be opportunities for research and higher education and patients will get better services at a lower cost.”
JU Vice-Chancellor Prof Dr Nurul Alam said, "We are thinking about the importance of a medical faculty and specialized hospital. The matter has already been discussed with the government. Once the ongoing project is completed, necessary steps will be taken.”
Grid integration guideline fails to make a success of solar irrigation
The government's guideline for purchasing electricity from solar irrigation pumps failed to draw adequate response from stakeholders thus the government is now thinking of forming a high-powered inter-ministerial committee involving concerned ministries and entities in the sector.
According to official sources, the Sustainable and Renewable Energy Development Authority (Sreda) published a policy guideline titled: "Grid Integration Guideline for Solar Irrigation Pump" in July 2020.
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The main purpose of the guideline was to facilitate solar pump operators to sell their idle electricity to distribution entities and also the distribution entities' purchase of electricity from pump operators under a specific policy.
The idea of purchasing electricity from solar-run irrigation pumps came from the government's success in purchasing power from rooftop solar plants installed in office and industrial buildings, SREDA officials said.
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During the off-season, the government will buy electricity from the solar irrigation plant operators. Under the plan, pump operators will be able to sell their idle electricity to the national grid using local distribution grid lines.
But "Grid Integration Guideline for Solar Irrigation Pump" failed to make any significant breakthrough in setting up solar irrigation pumps to replace the diesel-fired pumps.
So far, about 6000 pumps, out of 1.34 million diesel fired pumps, were converted to solar-run pumps, said a SREDA official.
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But the stakeholders do not agree with such figures. Dipal C Barua, who is deeply involved in solar irrigation and has been implementing a number of projects in Kustia and Dinajpur districts, said so far about 3000 irrigation pumps were set up across the country.
He, also former president of Bangladesh Solar and Renewable Energy Association (BSREA) said that replacing the diesel-fired pumps with solar-pumps reduced the cost of irrigation by 40-50 percent.
"For a crop season, farmers now spend Tk 2000 for a land while they had to pay Tk 4000 for irrigation by diesel-fired pumps," he told UNB.
But such a project is individually not attractive for a single farmer and also for distribution companies to buy idle power, he observed with his experience of installing about 30 irrigation pumps in Pabna.
There must be a unique business model to make the solar irrigation initiative where it will be lucrative for both pump operators, formers and utilities, he said.
Expressing a similar opinion, a senior SREDA official said the Power Division is now thinking of forming an inter-ministerial committee to evolve a business model to make the solar irrigation project successful.
Recently, the SREDA organized a meeting to discuss the overall situation of the solar irrigation pumps.
In the meeting Prime Minister's Energy Advisor Dr Tawfiq-e-Elahi Chowdhury directed the officials in the power sector to set a target under a specific plan to convert the country's diesel-fired irrigation pumps into solar-run ones.
"You have to set a goal under a plan to increase the number of solar-run pumps in irrigation," he told SREDA officials.
He also advised the farmers not to use excessive water than required for the irrigation.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid also addressed the event at the SREDA office.
The energy advisor said that a committee will be formed after Eid from the Prime Minister's office so that an effective role can be played in reaching the desired goal in the renewable energy sector.
Emphasizing the mobilization of the climate fund, he said there should be an initiative to collect promised amounts of money from the Loss & Damage Fund announced in Cop-28.
Nasrul Hamid said there should be united efforts for promotion of solar irrigation pumps. Reducing the use of diesel pumps will also reduce carbon emissions.
Each diesel pump consumes 1023.34 liters of diesel per year,” he said, adding, the government has to import huge quantities of diesel which is a waste of foreign exchange and also harmful to the environment.
Eid shopping dampened: Rising costs hit Keraniganj's wholesale clothes market
In the bustling Keraniganj wholesale clothes market near Dhaka, traders are grappling with dwindling profits and a significant drop in customer footfall as Eid-ul-Fitr approaches. This year, the festive fervor is markedly subdued, a sharp contrast to the usually vibrant pre-Eid shopping spree.
Historically, the market thrived with shoppers from various areas, buzzing with activity before Shab-e-Barat. However, this season, the scene has shifted, primarily due to escalating commodity prices affecting the Eid market. Retail buyers are sparse, and those who venture out purchase less than they traditionally would.
A visit to the market revealed a noticeable hike in clothing prices across the board, ranging from Tk 20 to Tk 300-400 based on the quality. From shirts and pants experiencing a Tk 50-100 increase to Chinese T-shirts hitting the higher end of Tk 300-400, the inflation has been broad and unforgiving.
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Govt initiatives aim to simplify tax system and enhance revenue collection through technology and policy overhaul
In a strategic push to revamp its tax policy and administration, the Bangladesh government has outlined plans for significant reforms aimed at making the system more effective and taxpayer-friendly in the medium term (2023-24 to 2025-26). According to the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) by the Finance Division of the Ministry of Finance, these changes are integral to achieving the nation’s development objectives.
The government acknowledges the urgent need to generate ample revenue to support Bangladesh’s development ambitions. “Several initiatives are underway to make tax administration taxpayer-friendly and transparent by expanding the scope of digitalization and automation in tax registration, return submission, and tax payment,” the policy statement highlights.
A critical area of focus is the scrutiny and rationalization of existing tax exemptions. The statement underscores the government’s intention to align tax collection practices with the needs of local industries and to ensure fiscal preparedness for unforeseen global challenges, drawing lessons from recent global events.
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Moreover, the pursuit of revenue growth extends beyond tax reforms to tapping into non-tax revenue (NTR) sources. The expansion of public services and the notable rise in household incomes over the past decade present new opportunities for revenue mobilization, the statement elaborates. Initiatives such as the introduction of a digital payment system aim to facilitate easier access to public services, thereby enhancing NTR collection.
Efforts to improve dividends and profits from state-owned enterprises through efficiency and profitability measures are also in motion. With an ambitious revenue target of Tk 5872 billion and Tk 7097 billion for the fiscal years 2024-25 and 2025-26, respectively, the government is keen on leveraging digital advancements to simplify tax payments.
Despite Bangladesh’s remarkable economic growth, the pace of revenue mobilization has not matched, underscoring the need for a more robust revenue framework to support the country’s long-term development goals. Bangladesh aspires to transition to a higher middle-income status by 2031 and achieve developed country status by 2041, with the ‘Perspective Plan of Bangladesh 2021-2041’ targets to elevate the revenue-GDP ratio to 19.55 percent by 2031 and 24 percent by 2041.
The statement said that a large share of the revenue comes from the direct (income tax) and indirect taxes (VAT and customs) collected by the National Board of Revenue (NBR).
Non-NBR taxes and non-tax revenue (NTR) constitute smaller parts.
Although there has been some progress over the years to be less reliant on trade taxes and the share of direct taxes has increased to some extent, there is still ample room to improve.
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Addressing the reasons behind low revenue collection, including economic informality, structural inefficiencies, and cultural attitudes towards taxation, is seen as vital. The government, in collaboration with the private sector, is focused on simplifying tax compliance, increasing transparency through digitalization, and adopting progressive taxation principles.
Success in revenue collection will be strengthened by making the tax administration easy to approach, increasing digitalization to bring in transparency and predictability and bringing in progressive taxation where the affluent pay a higher part of the taxes, the Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26) of the Finance Division of the Finance Ministry said.
Old Dhaka's Iftar bazar heats up, even as prices pinch
As the month of Ramadan started, the bustling streets of Old Dhaka came alive with the aroma of spices and the sizzle of frying pans. The Iftar bazars in this ancient section of the capital are a battleground for traditional dishes vying to be crowned the ultimate feast to break one's fast.
Amongst the labyrinthine lanes of Chawkbazar, Islampur, Bangla Bazar, and the roadside tong shops, vendors engage in a spirited rivalry to tantalize the taste buds of the devout.
Chawkbazar stands as a bastion of tradition in the realm of Iftar markets, offering a cornucopia of culinary delights. Here, amidst the throng of eager patrons, one can find an array of Iftar staples: chickpeas, piaju, puri, chop, and juice, alongside a plethora of innovative creations.
The alleys of Islampur and Bangla Bazar also boast diverse assortments of Iftar treats, showcasing the rich culinary heritage of the region.
Central to the charm of Chawkbazar is the legendary 'Boro Baper Polay Khay' Iftar, a concoction steeped in tradition and flavor. Comprising an eclectic mix of 15 ingredients, including chicken, minced meat, cotton kebab, and an assortment of spices, it embodies the essence of Old Dhaka's culinary heritage. Priced between Tk 800 to Tk 1200 per kilogram, it stands as a testament to the enduring appeal of tradition.
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However, a newcomer to the scene, 'Shob Baper Polay Khay,' poses a formidable challenge to the reigning champion. Vendors tout its credentials, proclaiming, "This is the traditional food of Dhaka, the best of Chawkbazar." They claim that their food has a 78-year-old tradition.
Kebabs reign supreme in this gastronomic arena, with vendors proudly presenting an assortment of tantalizing options. From Tengri Kebab to Suti Kebab, Sheek Kebab, and Kathi Kebab, the choices are as diverse as they are delectable. Whole chicken roasts, quail roasts, and succulent leg of goat roasts vie for attention alongside savory beef haleem and fragrant biryanis. Vegetarian offerings such as vegetable naan, milk naan, and keema paratha cater to diverse palates, while vendors employ persuasive advertising tactics to attract discerning buyers.
‘Squeezed middle’ in urban areas bearing brunt of Ramadan price hike
The runaway price hike during this year’s Ramadan is proving particularly difficult for the middle to lower-middle class households in urban areas, for whom a Tk10-15,000 spike in the monthly spend is a big ask.
These are the families that despite living in or near areas where supershops are proliferating, still prefer to buy from the local kaachabazars (kitchen markets). And the principal breadwinner, usually the father, often prefers to visit the bazar and make the purchases himself.
One of them, Kazi Shariful Haque, a job holder at a private local company, told UNB that in any case one has to spend more on food during Ramadan, despite it being the month for restraint, on the food that is consumed during Iftar and Sehri. Consumption of some items like fruits, beef, and mutton, does come down, he conceded.
UNB spoke to Shariful at Kawranbazar, the principal kitchen market in the capital, which he visited just prior to the weekend with a shopping list that contained fruits, vegetables, fish, and chicken, among other things.
He shared that in his experience, most items’ prices jumped by Tk10-30 per kg. Fish prices jumped by Tk100 to 150 per kg, chicken jumped by Tk15 to 20 per kg, while chick-pea, lentil, onion, and garlic ginger are among the items that saw prices jump by Tk10 to 30 per kg, since the start of Ramadan.
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Dates are not available at price set by the government, he said, while apples, malta, and some other fruits are selling at Tk300 to 350 per kg - an increase in the price by Tk 50 per kg. Medium-quality dates are selling at Tk800-1000 per kg, he pointed out.
However, Shariful has found that the prices of rice and edible oil are stable for now, but of course household expenses are not limited to the spending at the bazaar only. In almost every sphere, including medicines (health), water rates, gas rates, electricity, house rent, people are having to spend more and more.
Bills and prices are squeezing the middle class in cities, especially at the lower end like Shariful, who last received a raise at his company two years ago, and in these two years, inflation has been spiking in the country. Even the company he worked for suffered losses in business in these two years, and it made him perceive a period of gloom for the economy.
Still, it makes him yearn for when the times were good for these very same people, as recently as 2-3 years ago.
“In 2021, I could maintain my four-member family in Farmgate, Dhaka along with spending for parents living in the village and even then save a small amount every month. And now I have to maintain family expenditure by drawing on my previous savings,” Shariful voiced his frustration in an annoyed voice.
Shariful’s is the common refrain among most shoppers at the city’s kitchen markets these days.
They make up Bangladesh’s ‘squeezed middle’, a term coined by the former leader of the opposition in the UK parliament, Ed Miliband of Labour, in the aftermath of the global financial crisis of 2009.
As Ramadan is about to begin, prices of essentials high in Khulna kitchen markets
The Oxford English Dictionary, while choosing it as their ‘Word of the Year’ in 2011, defined it as “the section of society regarded as particularly affected by inflation, wage freezes, and cuts in public spending during a time of economic difficulty, consisting principally of those people on low or middle incomes.”
All these conditions are met by the likes of Shariful, and others in his bracket.
Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD) told UNB that inflation and randomly fluctuating exchange rates (affecting the price of imported products) have increased the cost of living in the urban areas, as the urban people are depending on supply chains..
In the rural areas, 60 to 70 percent of items consumed by a family are produced on their own land - which is emphatically not the case in the cities. Most of the middle class is even living on rented property. As a result, the price hikes tend to affect urban life more severely, she said.
Read more: Industries Minister announces special drive to control standard, prices of goods during Ramadan
Dr Fahmida said it was not only the prices of consumer goods - health-related expenditure and utility prices have also increased, confirming the observation by Shariful, and others, that UNB spoke to in Kawranbazar.
“Household incomes, mainly salaries, did not increase in the post-Covid period, after having gone down during Covid itself (2020-2022),” Dr Fahmida said. “As a result, jobholders are really bearing the brunt of the price hikes.”
Average wage growth remained well below the inflation rate in Bangladesh for the 22nd month straight in November 2023, as per the Bangladesh Bureau of Statistics (BBS), corresponding to the timeline she provided.
Ghulam Rahman, president of the Consumers Association of Bangladesh (CAB), said that the prices of all types of products have increased, whether those items are imported or produced in the country.
Although the incomes of jobholders did not increase, their expenses have increased alongside that of others, but this has proven a particular burden for the fixed income groups, he said.
He said If prices were hiked “logically and systematically”- presumably meaning adhering to market fundamentals - then this burden would remain manageable. But when it happens arbitrarily, indicating how it happens in Bangladesh, it becomes very hard for the people, said the CAB president.
He advised authorities to pay more attention to whether this is happening, as there are several instances of price gouging, hoarding, etc in the country, and there are laws against these.
Wherever irregularities are found, the perpetrators should be brought under the law, to bring stability to the market, the CAB president urged.
Read more: Commerce ministry fixes prices for dates